Florida Insurance Law Blog

Well, there are a few words in this Non Sequitor cartoon, but just a few!

I never can quite understand how voters elect politicians who support legislation that favors big corporations over the little guy. Some folks continually vote against their own better interest.

How some legislators propose legislation that is drafted by the insurance industry and their lobbyists, and against their own constituents, is beyond any logic.

This cartoon just about says it all...... http://www.seattlepi.com/dayart/20100708/cartoon20100708_fixed.jpg

Posted by Jeffrey M. Liggio | Permalink | Email This Post

Posted In: Insurance News and Current Events

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I am so excited to announce that Florida is still right at the top........at the top of the list of states that have the most people without health insurance.

Actually, we're number 3, behind Texas and New Mexico. Here's the link to the Washington Post article regarding the new U.S Census report: http://www.washingtonpost.com/wp-dyn/content/article/2010/07/27/AR2010072705835.html?wpisrc=nl_cuzhead

What the article does not mention, is how the cost of all the uninsured folks is passed to the state and the taxpayers, mainly through care that uninsured folks seek at public hospitals and emergency rooms.

Also, the article doesn't address the problem that we, at Liggio Benrubi see, and fight every day: denied claims by health insurers and HMOS for folks that DO have health insurance coverage, wrongful cancellations of coverage, and failure to pay and underpayment of medical and hospital charges.

Another dubious we're number one(three), for Florida!

Posted by Jeffrey M. Liggio | Permalink | Email This Post

Posted In: Insurance News and Current Events

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Yesterday, the Consumer federation of America issued a report on various types of "add on" insurance. Here's the link to this excellent report: http://admin.consumerfed.org/elements/www.consumerfed.org/File/Insurance_add-on_consumer_alert.pdf

We've handled many cases over the years when claims were denied under these "add on" insurance companies, credit life and disability insurance, title insurance, travel insurance, bextended warranties, and others.

Unfortunately, the "good deal" and "peace of mind" sold to our clients when they purchased the insurance ended up to be a sour deal and a real headache, when they needed the insurance and retained us.

I highly recommend this terrific report, and the report itself has links that will help you to educate yourself even more.

Posted by Jeffrey M. Liggio | Permalink | Email This Post

Posted In: Insurance News and Current Events

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The politicians who were against the recent Health Care Reform Act, and the health insurance industry, kept repeating the myth that most people are happy with their health insurance.

Yeah right! Uh huh.........

People are tickled when their claims aren't paid, or the insurer pays a fraction of their bills.

People are tickled when they can't get medical care recommended by their doctor because the health insurance won't approve it.

People are tickled when their physician prescribes a medicine, but their health insurance company changes the prescription to a cheaper, less effective generic drug.

People are REALLY jumping for joy each year on renewal, when the coverage is limited, again, and they get a premium increase: more money for less benefits.

.........and now this: Consumers Union issued a report that shows, while they are limiting care and benefits, and jacking up premiums, a number of the Blue Cross "nonprofit" insurers are sitting on huge surpluses of cash.

Here's the link to the Washington Post story, which itself contains the link to the study itself:
http://www.washingtonpost.com/wp-dyn/content/article/2010/07/25/AR2010072503295.html?wpisrc=nl_cuzhead

Posted by Jeffrey M. Liggio | Permalink | Email This Post

Posted In: Insurance News and Current Events

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Over the years, we've had many cases, where our client cared enough for themselves and their loved ones to purchase health insurance or an HMO plan, only to learn, when they need the benefits, that the insurance company of HMO has decided to rescind their insurance because they supposedly failed to disclose something in their medical history when they applied for the coverage in the first place.

The person and their loved ones are forced to fight with the insurance company or HMO when they are sick, and in debt. In other words, they must fight the insurance company or HMO when they are least able to do so, at their lowest ebb.

One of the more important aspects of the recent Health Care Reform act is its Patients Bill of Rights, that will stop insurance companies and HMOs from rescinding coverage unless the insured actually commits fraud (intentionally lies) when the coverage is applied for. Here is the link to the Health Care Reform website that will explain it more fully: http://healthreform.gov/newsroom/new_patients_bill_of_rights.html

Jeff Liggio

Posted by Jeffrey M. Liggio | Permalink | Email This Post

Posted In: Insurance News and Current Events

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In 2007 we had the opportunity to represent a terrific young lady, Larose McLoyd, who had been the victim of a fraud perpetrated on her by the National Indemnity Company of the South and one of it's claims personnel, Ms. Dworak. Here is the link to our brief description of the underlying facts and litigation: http://www.liggiolaw.com/lawyer-attorney-1246051.html

Today, the Florida 1st District Court of Appeals rejected National Indemnity Company's appeal of that verdict.

This case is proof that our justice system can level the playing field between the corporation and the individual, and between the rich and powerful and the less fortunate members of our society.

Posted by Jeffrey M. Liggio | Permalink | Email This Post

Posted In: Bad Faith Insurance Claims , Insurance News and Current Events , Noteworthy Appellate Decision

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It's been some time since I posted on this Blog, and I apologize for that. We've been just a little busy with some of our ongoing bad faith suits and class actions. I'll certainly try to do better.

There was something in the media today that I think is very important reading.

To put things in context: While the Florida property /homeowners insurers make it extremely difficult for any homeowner who has the temerity to make a claim, and while they are asking the legislature to remove any restraints on their rates, this is what they actually do with the premiums paid by Florida homeowners: http://www.heraldtribune.com/apps/pbcs.dll/article?AID=/20100315/ARTICLE/3141081/2107/BUSINESS&Title=How-insurers-make-millions-on-the-side&tc=ar&template=printpicart

Posted by Jeffrey M. Liggio | Permalink | Email This Post

Posted In: Bad Faith Insurance Claims , Class Actions , Insurance News and Current Events

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I have previously posted about the ongoing and anticipated effects of the current financial crisis on the insurance industry as a whole. Now, it's getting personal.

In 1984, my wife and I purchased Universal Life Insurance on both of our lives with Shenandoah Life Insurance Company. We have faithfully paid the premiums for the policies for the 25 years since that time. In fact, for a period of time we even paid more than the required minimum premium. In my calculation, we have paid at least $50,000 in premiums to them since the inception of the policy.

I just learned that the Virginia Department of Insurance has placed them under supervision. Here is the link to the documents in regard to the receivership.

According to the "Questions and Answers" document, the receivership was necessary due to the declining value of some of the company's investments. In other words, they took premiums from policyholders and invested the premiums, and the investments of those funds didn't pan out.

As I posted earlier, whether you are shopping for insurance, paying for an insurance policy, or making or litigating claims.......be aware of the insurance company's financial status.

Unfortunately for all of us, this ain't nearly over yet, we still can't see the bottom and how deep it is for the insurance industry.

Posted by Jeffrey M. Liggio | Permalink | Email This Post

Posted In: Insurance News and Current Events

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Following on from an entry last week, The insurance industry continues to report that employees are being laid off, and the reviewing services seem to be constantly downgrading the financial strength ratings of the various insurers.

In times like these, the atmosphere is ripe for consumers to make the wrong decision when their insurance policy is either being trmeinated by the insurance company, or they are up for renewal, and they must decide whether to renew their present coverage, or to seek a cheaper alternative.

Recently an insurer called "Peoples Trust" has been aggressively advertising in Florida. Here is what the Florida Association of Insurance Agents has to say about Peoples Trust: "Peoples Trust Insurance Company, The Truth About Peoples Trust"

The old saw goes something like: "If it seems to good to be true, it probably is!". Insurance is too important to buy based on slick advertising, and bold promises. In this computerized, information age it is easy for a consumer to research an insurance company's track record, and financial solvency. Unfortunatley, when it comes to insurance a consumer finds out that they bought the wrong coverage, from the wrong insurance company when it is too late......when they actually need the coverage.

Posted by Jeffrey M. Liggio | Permalink | Email This Post

Posted In: Insurance News and Current Events

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We've been watching the homeowners insurance market in Florida for more than 20 years now. The latest news is that State Farm announced today that it will not renew any homeowners policies in Florida.
The impact on Florida homeowners is significant, 703,357 homeowners’ policies, written for $1,054,918,245.00, will be affected.

This follows a trend that began after Hurricane Andrew, in 1992. Prior to Hurricane Andrew, there had not been a major hurricane that had hit Florida for 25 years. That means that the homeowners insurers had made an enormous profit on the homeowners premiums for those 25 mild years. You would think that they would have been prudent and conservative with their policyholder's premiums during that time, so that they would be able to easily withstand a major hurricane loss....... (Do you really think that they were any better or smarter at investing your premiums then than they are now?)

Instead, after Hurricane Andrew, the homeowner insurers cried out that Hurricane Andrew had created huge money problems for them, and lobbied the Florida legislature for changes to the law, which permitted them to form "Florida" domiciled subsidiaries,like State Farm "Florida" thus allowing them to decouple their homeowners and auto business. The legislature also formed the state owned insurance company, Citizens, and subsequently the market has deteriorated to the point that all of the major carriers have now pulled out of the homeowners insurance market in Florida,

Homeowners have very little choice today, there have been problems with some of the smaller carriers that entered the market, and prices for homeowners insurance have done nothing but go up, and for less coverage.

This does not bode well for the availability and affordability of coverage, and it certainly will affect what happens if you are a homeowner with a smaller insurer in the event that you need to make a claim.

Posted by Jeffrey M. Liggio | Permalink | Email This Post

Posted In: Insurance News and Current Events

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In our Class Action practice, we want to know if the Defendant company has D&O or E&O insurance?

D&O insurance is important to us for several reasons:
1) Is the insurance company providing the defense lawyers, and paying those lawyers?
2) Is there insurance coverage for our suit?
3) Is the D&O insurer denying coverage?

In a recent successful Class Action that we handled, the D&O carrier had denied coverage to the insurance company that we were in suit with, by msicharecterizing what our lawsuit was about, and what relief we were seeking.

Aside from the fact that I was personally insulted! (not really!) The D&O carrier's denial of coverage impaired our ability to reach a fair settlement on behalf of the Class.

We did settle, and I agreed to be a witness in the subsequent covarage lawsuit that the insurance company defendant filed against the D&O carrier, which was resolved favorably as a result.

In these uncertain times and claims of corpoate and insurance company malfeasance, you need to be aware of the availability of D&O or E&O coverage, and whether that carrier is indeed covering the claim. Also if you or your company is threatened with a claim, one of your first steps is to report the claim to your D&O or E&O carrier, and be agressive in pursuing the coverage that you purchased to protect you.

Posted by Jeffrey M. Liggio | Permalink | Email This Post

Posted In: Class Actions

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Everybody should realize that insurance companies make money by investing the money they receve in premiums paid by their insureds. Does anyone think that insurance companies are any better at investing their money than any of the wall street investment banks that made such bad decisions?

Aside from all the press coverage of AIG's problems, the media has basically overlooked the fact that many insurance companies are having significant financial problems. In fact just by a little internet searching, I learned that AIG is not the only insurance company that is requesting Federal bailout money, and that A.M. Best has downgraded its credit ratings of some prominent insurance companies and their coprporate parents (your insurance company may be a subsidiary of a much larger group/holding company).

Over the years we have seen insurer's adjusting claims in indefensible ways when the insurance company is in financial trouble.

One example that sticks in my mind was a small one man roofing contractor, who basically worked out of his home. He had resurfaced a roof on a warehouse. We had several days of torrential rains, and the roof collapsed. The roofing contractor was sued, and he turned the claim in to his liability insurer. The insurer denied the claim on the silly basis that the only roof that the liability policy would cover was the roof on his own office!

We sued the carrier, and forced them to cover the suit and pay the loss, and very shortly after we finished, the insurer went into receivership, and was declared insolvent.

The point is, that whether you are an insured looking to your own insurance company to protect you, or you are a victim making a claim, the reality is you'd better be aware of the insurer's conduct, and pay attention to whether the conduct is because of financial problems the insurer is having outside of your personal situation.

Posted by Jeffrey M. Liggio | Permalink | Email This Post

Posted In: Bad Faith Insurance Claims , Insurance News and Current Events

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